KiwiSaver and your take home pay
If you join KiwiSaver through a new job and do not pick a rate, 3.5% of your gross pay goes in. On $60,000 that is $2,100 a year, and your take home pay drops by exactly that amount.
What each rate costs on $60,000
| You pay in | Contribution a year | Take home a year | Take home a month |
|---|---|---|---|
| Not in KiwiSaver | $0 | $48,729.50 | $4,060.79 |
| 3.5% | $2,100 | $46,629.50 | $3,885.79 |
| 4% | $2,400 | $46,329.50 | $3,860.79 |
| 6% | $3,600 | $45,129.50 | $3,760.79 |
| 8% | $4,800 | $43,929.50 | $3,660.79 |
| 10% | $6,000 | $42,729.50 | $3,560.79 |
The available rates are 3.5%, 4%, 6%, 8% and 10%. Moving from 3.5% to 6% costs you another $125 a month, so your monthly pay goes from $3,885.79 to $3,760.79. Check that against your budget before you change the rate.
What actually goes in
At 3.5% on $60,000, $4,200 a year goes into your account before employer tax: $2,100 from you and $2,100 from your employer. It costs you $175 a month in lost take home pay. The government's contribution below comes on top.
Joining and leaving
You can opt out, but only between the end of week 2 and week 8 of starting work, which is day 14 to day 56. Miss that window and you stay in. Source: Inland Revenue, opting out of KiwiSaver.
It does not reduce your tax
Your contribution comes out of pay that has already been taxed. PAYE is the same whether you are in KiwiSaver or not, and the salary pages on this site treat it that way. Nothing is clawed back at tax time.
Your employer's share
An eligible employee gets at least 3.5% of gross pay from their employer on top of their wages. On $60,000 that is $2,100 a year. It is not part of your take home figure. Your employer has to deduct employer superannuation contribution tax from it, so less than 3.5% of your pay reaches your account.
Some employers pay more than the minimum, or match you if you raise your own rate. It is worth asking.
The government's 25 cents
Since 1 July 2025 the government has added 25 cents for every dollar you put in between 1 July and 30 June, up to a maximum of $260.72 a year. To get all of it you need to contribute $1,042.86 in the year. At 3.5% on $60,000 you pay in $2,100, so you hit the maximum easily. Even a smaller contribution still earns 25 cents on the dollar. Eligibility rules apply, and the money goes into your account, not your pay. Sources: KiwiSaver changes and KiwiSaver benefits on ird.govt.nz.
See your own numbers on the $60,000 salary page, or pick a KiwiSaver rate in the calculator. Your payslip shows the rate you are really on.
General information only, not financial advice.
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